Asian markets fell for a second straight day yesterday Tuesday Nov 3 as dealers further sold off stocks on worries over the global economy, despite data pointing to a pick-up in manufacturing in the US.
Analysts tipped investors to remain cautious until the end of a US monetary policy meeting and the release of a non-farm payrolls report on Friday.
Tokyo was closed for a public holiday.
HONG KONG: Shares fell 1.76 percent yesterday, the second consecutive day of falls, as investor confidence remained low despite a pick-up on Wall Street.
The benchmark Hang Seng Index fell 380.13 points to 21,240.06.
“The market is in a consolidation mode this week after huge volatility in the past two weeks. Government intervention in the real estate market also affected market sentiment,” said Jackson Wong, an investment manager at Tanrich Financial Group.
SINGAPORE: Shares closed 0.90 percent lower yesterday as investors looked for fresh leads to spark buying interest, dealers said.
The blue-chip Straits Times Index fell 23.88 points to 2,621.55.
“The market seems a bit tired these couple of sessions. We need more direction,” said a trader at a bank-backed brokerage.
SYDNEY: Down 0.20 percent. The S&P/ASX 200 dropped 8.9 points to 4,531.5.
Turnover was slim due to the Melbourne Cup, dealers said.
SHANGHAI: Up 1.22 percent. The composite index, which covers both A and B shares, rose 37.58 points to 3,114.23.
ChiNext continued to fall on its third day, with 23 of the 28 stocks on the board losing ground.
SEOUL: Down 0.59 percent. The Kospi fell 9.17 points to 1,549.92.
The reaction to better-than-expected US manufacturing data reflected still weak sentiment, analysts said.
TAIPEI: Down 0.17 percent. The weighted index dropped 12.25 points to 7,322.93.
A total of 25 shares surged to their daily 7.0 percent limit, against 18 limit-down.
“While investors were reluctant to build up their portfolio, they did not want to dump their shares at low levels,” said Chen Yu-yu of Capital Securities.
BANGKOK: Down 1.29 percent. The composite index lost 8.74 points to close at 668.48 and the blue-chip index was down 7.88 points to 469.50.
“Investors took profit in energy shares as they were still concerned about the fire situation off Australian shores,” said Pichai Lertsupongkit, an analyst at Thanachart Securities.
JAKARTA: Down 1.58 percent. The composite index lost 37.53 points to 2,334.10.
“I think most investors tried to take cash for risk aversion and ahead of the central bank meeting tomorrow to decide on interest rate policy,” a trader told Dow Jones Newswires.
KUALA LAMPUR: Share prices on Bursa Malaysia moved sideways in tandem with the weak performances on Wall Street and regional stock markets yesterday.
Overall declining counters continued to outpace advancing counters by 388 to 261.
The Kuala Lumpur Composite Index (KLCI) rebounded from its intra-day low of 1,240.89 to its intra-day high of 1,245.47 yesterday.
It closed at 1,242.32 points, giving a day-on-day gain of 0.56 point, or 0.05 percent.
MANILA: Flat. The composite index edged down 0.26 points to close at 2,908.24 while the all-share index was also down marginally at 1,826.80 points.
“We have been having a hard time breaching several psychological resistance levels. There is a psychological barrier at 3,000 which would make any technical rally hard to sustain,” said Jose Vistan of AB Capital Securities.
MUMBAI: Down 3.09 percent. The 30-share Sensex index fell 491.34 points to 15,404.94, a two-month-low and a sixth day of losses.
The trading session November 3 witnessed another decline as both VN Index and HNX Index continued falling.
Particularly, the VN Index slipped 22.06 points or 3.93 percent to 539.65 pts with the total matching order trade of nearly 61 million shares valued over three trillion dong, up 3 percent in volume but down 19 percent in value from previous session.
The Hanoi Stock Exchange (HNX) continued its decreasing impetus when the HNX Index fell another 4.97 points or 2.64 percent to 183.05 pts with the total market trade of nearly 33.7 million shares worth over 1.32 trillion dong.
LONDON: European stock markets fell sharply yesterday, dragged down by weakness in the banking sector
The FTSEurofirst 300 index of top European shares provisionally closed 1 percent down at 970.26 points, the lowest closing level since early October.
The London FTSE 100 index was down 1.32 percent at 5,037.21 points. In Paris, the CAC 40 shed 1.52 percent to finish at 3,584.25 points while in Frankfurt, the Dax lost 1.93 percent to 5,353.25 points.
Investors sidestepped some of their doubts about the economy and bought energy and industrial stocks as commodity prices rose.
Stocks ended back-and-forth trading mostly higher Tuesday as a spike in the price of gold and corporate dealmaking extended an advance from Monday. The gains in commodity prices helped stocks pare early losses.
The Dow fell 17.53, or 0.2 percent, to 9,771.91, after being down as much as 86 points. The Dow rose 77 points Monday following reports of improvements in manufacturing and housing.
The broader Standard & Poor’s 500 index rose 2.53, or 0.2 percent, to 1,045.41. The index is up 54.5 percent from a 12-year low in early March.
The Nasdaq composite index rose 8.12, or 0.4 percent, to 2,057.32.
“We’re seeing a natural ebb and flow of risk appetite,” said Kevin Gardiner, head of investment strategy for Europe, Middle East and Africa at Barclays Wealth.
Analysts expect trading to be choppy this week, as investors digest a frenzy economic reports. Investors are watching the Federal Reserve, which concludes a two-day meeting Wednesday, for any clues about the economy and the direction of interest rates.
Investors also looked past increases in automobile sales. Ford Motor Co. said sales rose 3 percent from October last year, while General Motors Corp.’s sales rose 4.7 percent. It was the first monthly sales increase for the nation’s largest automaker since January 2008. Meanwhile, Chrysler’s sales fell 30 percent, though they improved from September.
Bond prices fell as stocks rose, pushing yields higher. The yield on the benchmark 10-year Treasury note rose to 3.47 percent from 3.42 percent late Monday.
The dollar was mixed against other major currencies.
Crude oil rose $1.47 to settle at $79.60 a barrel on the New York Mercantile Exchange, while gold surged to a new high of $1,087 an ounce.
Shares of Burlington Northern jumped $20.93, or 27.5 percent, to $97 after the move by Buffett’s Berkshire Hathaway Inc., which already owns about 22 percent of Burlington.
That pulled other railroads higher. CSX Corp. rose $3.13, or 7.3 percent, to $45.97, while Norfolk Southern Corp. advanced $2.52, or 5.4 percent, to $49.15.
Black & Decker jumped $14.66, or 31 percent, to $62, while Stanley Works rose $4.54, or 10.1 percent, to $49.69.
Johnson & Johnson fell 56 cents, or 0.9 percent, to $58.93.
Royal Bank of Scotland fell 69 cents, or 5.5 percent, to $11.96, while Lloyds rose 28 cents, or 5.2 percent, to $5.72.
The Russell 2000 index of smaller companies rose 8.22, or 1.5 percent, to 570.62.
Three stocks rose for every two that fell on the New York Stock Exchange, where consolidated volume came to 5.5 billion shares, compared with 6.3 billion Monday.
Benchmark Currency Rates USD EUR JPY GBP CHF CAD AUD HKD HKD 7.7504 11.4028 0.0858 12.7165 7.5463 7.2616 6.9986 AUD 1.1074 1.6293 0.0123 1.817 1.0783 1.0376 0.1429 CAD 1.0673 1.5703 0.0118 1.7512 1.0392 0.9638 0.1377 CHF 1.027 1.511 0.0114 1.6851 0.9623 0.9274 0.1325 GBP 0.6095 0.8967 0.0067 0.5934 0.571 0.5504 0.0786 JPY 90.37 132.957 148.274 87.9899 84.6708 81.6041 11.66 EUR 0.6797 0.0075 1.1152 0.6618 0.6368 0.6138 0.0877 USD 1.4712 0.0111 1.6408 0.9737 0.9369 0.903 0.129 Bloomberg